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Why YOUR Company Must Become a Tech Company

Why YOUR Company Must Become a Tech Company

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Published by Sales Drive
At Sales drive our core philosophy is considering the basics of successful sales, skills, attitude & aspirations.

Get these 3 pillars working in harmony & success will naturally follow.

Please get in touch & have a conversation to experience our insights - we have some great simple solutions to what often seem intractable deep issues.

We can show you the way to growth & profits with our combined 60+ years street smart experience gained through booms, recessions, tough market conditions, start ups, mature & growing businesses.

For a copy of the article please go to the HBR Blog or contact us

http://www.salesdrive.com.au
At Sales drive our core philosophy is considering the basics of successful sales, skills, attitude & aspirations.

Get these 3 pillars working in harmony & success will naturally follow.

Please get in touch & have a conversation to experience our insights - we have some great simple solutions to what often seem intractable deep issues.

We can show you the way to growth & profits with our combined 60+ years street smart experience gained through booms, recessions, tough market conditions, start ups, mature & growing businesses.

For a copy of the article please go to the HBR Blog or contact us

http://www.salesdrive.com.au

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Categories:Types, Business/Law
Published by: Sales Drive on Aug 26, 2012
Copyright:Attribution Non-commercial

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03/29/2013

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16/04/2012Why YOUR Company Must Become a Tech Company - Apple, Amazon, Facebook, Instagram Lesso1/5forbes.com/sites/adamhartung/2012/04/14/…/print/
PR:n/aI:283,000L:0LD:3313434I:728,000Rank:315 Age:November 4, 1996Tw:11994l:n/a+1:0whoissourceRa
Portrait of Henry Ford (ca. 1919) (Photocredit: Wikipedia)
 Apple‘s amazing increase in value is morethan just a “rah-rah” story for aturnaround. Fundamentally,
Apple istelling everyone – globally – thatthere has been a tectonic shift inmarkets.
And if leaders don’t understandthis shift, and incorporate it into theirstrategy and tactics, their organizations aregoing to have a very difficult future.Recently Apple’s value peaked at $600B. Yes, that is an astounding number, for itreflects not only 50% greater value thanthe oil giant Exxon/Mobil (~$390B), butmore than the entire value of the stock markets in Spain, Greece and Portugal
combined 
!
 
LEADERSHIP
 
|
 
4/14/2012 @ 7:02PM|39,784 views
 Why YOUR Company MustBecome a Tech Company - Apple,mazon, Facebook, InstagramLessons
Adam Hartung
, Contributor
I cover business growth & overcoming organizational obstacles.
 
16/04/2012Why YOUR Company Must Become a Tech Company - Apple, Amazon, Facebook, Instagram Lesso2/5forbes.com/sites/adamhartung/2012/04/14/…/print/
Source:
 Business Insider.com
This astounding valuation causes many investors to be reticent about owning Apple shares, for it seems implausible that any one company – especially atech company with so few employees – could be worth so much.Unless we look at this information in the context of a major, global economicshift. Consider that what the world values has changed dramatically. Andthat what investors are telling business (and government) leaders is that in aglobalized, fast paced world value is based upon what you know, when youknow it – in other words
information
. Not land, buildings or the ability tomake things.
 We’ve moved from an agrarian through the industrial to the new information economy 
Three hundred years ago the world’s wealthiest people owned land. Forcenturies sars were fought to control land. Kings owned land, and by controlling it captured the value of everything produced on that land. Asgovernments developed, reducing the role of kings, land barons became the wealthiest people in the world. In an agrarian economy, where most humanresources (and pretty much all others for that matter) were deployed in foodand shelter production owning land was the most valuable thing on theplanet.But then some 120 years ago along came the industrial revolution. Suddenly,productivity rose dramatically by applying new machines to jobs formerly performed by humans. With this shift, value changed. The greatindustrialists were able to capture the value of greater productivity – makingpeople like Cyrus McCormick, Henry Ford and Andrew Carnegie the wealthiest of the wealthy. Worth more than kings, government leaders, moststates and many foreign countries.The age of manufacturing was based upon the productivity of machines andthe application of industrial processes to what formerly was hand labor.Creating tools – from engines to automobiles to airplanes – created great wealth. Knowing how to make these machines, and making them, createdenormous value. And companies likeGeneral Motors,General Dynamicsand General Electricwere worth much more than the land upon which food wasproduced.
The Industrial Economy destroyed land values by making theresource less valuable
 
16/04/2012Why YOUR Company Must Become a Tech Company - Apple, Amazon, Facebook, Instagram Lesso3/5forbes.com/sites/adamhartung/2012/04/14/…/print/
By the middle 1900s America’s farmers were forced to create ever larger farmsto remain in business, and were constantly begging for government subsidiesto stay alive via price controls (parity programs) and land “set-asides” run by the Agriculture Department. By the 1980s family farms going broke by thethousands, agricultural land values plummeted and the ability to create value by growing or processing food was a struggle. Across the developed world, wealth shifted into the hands of industrialcompanies from landowners. To survive in agriculture required machinery more than land, as vast tracts could be farmed with few people, but requiredenormously expensive equipment. The industrial products determined value,not the land upon which they were used.
The Information Economy destroys industrial value, whilecreating value elsewhere
Sometime in the 1990s the world shifted again, and that’s what the chartabove shows us. Countries with little or no technology – no informationeconomy – cannot create value. Left with nothing but tool making, no ne value is created. On the other hand, companies that can drive new levels oproductivity via the creation, management, use and sale of information cancreate enormous value – like Apple.
Retailis no longer about “location, location, location” or inventory 
Think about the incredible shift that has happened in retail. America’s largestand most successful retailer from the 1900 turn of the century well into the1960s was Sears. In an industry that long equated success with “location,location, location” Sears has had, and continues to control, enormousamounts of land and buildings. But the value of Sears has declined like astone pitched off a bridge, now worth only $6B (1% the Apple value) despiteall that real estate!Simultaneously, America’s largest retailer Wal-Mart has seen its value gonowhere for over a decade, despite its thousands of locations that span every state, huge quantities of inventory and super-efficient supply chain. Eventhough Wal-Mart keeps adding stores, and enlarging stores, adding more andmore land, buildings and inventory to its “asset” base the company’scustomer base, sales and value are mired, unable to rise. Yet, Amazon – which has no land, and almost no buildings – has used the last20 years to go from start up to an $86B valuation – doing much better forshareholders than its traditional, industrial thinking competitors. In the last 5 years, Amazon’s value has roughly quadrupled!Source:
Yahoo Finance

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